Securities and markets regulatory news, June 2021 #2
The European Commission has published a staff working document containing a toolkit of indicators for monitoring progress on the Capital Markets Union .
ESMA refers to the Delegated Regulation adopted by the European Commission on 2 June 2021, specifying the conditions under which the commercial terms are to be considered to be FRANDT, and acknowledges that, although it cannot be known when the Delegated Regulation will start to apply, this will likely happen after 18 June 2021.
ESMA therefore states that it expects competent authorities not to prioritise their supervisory actions towards clearing members and clients expected to provide clearing services in accordance with FRANDT commercial terms before the date the Delegated Regulation will apply, and to carry out their risk-based supervisory powers in their day-to-day enforcement of applicable legislation in this area in a proportionate manner.
ESMA has published a final report containing the framework for the 2021 EU-wide stress test exercise for central counterparties .
The 2021 stress test addresses credit and concentration risks, and uses improved methodologies, including lessons learned from previous exercises, such as assessing the combination of concentration costs and credit losses when liquidating defaulting portfolios or including an intraday exercise for credit.
Following the Financial Conduct Authority’s announcement, in March 2021, on the future cessation and/or loss of representativeness of LIBOR, IBA consulted on its decision to stop publishing GBP LIBOR ISR at the end of 2021.